FINAL BILL REPORT

SHB 1562

                                  C 136 L 88

BYHouse Committee on Natural Resources (originally sponsored by Representatives Basich, Beck and Sanders)

Exempting materials valued below a certain amount sold from public lands from auction sale requirements.

House Committe on Natural Resources

Senate Committee on Environment & Natural Resources

SYNOPSIS AS ENACTED

BACKGROUND:

When the Department of Natural Resources (DNR) sells timber and other natural resources from state lands, current law prescribes different procedural requirements depending on the appraised value of the natural resource being sold.

Valuable materials with an appraised value of $20,000 or more must be sold either at public auction or by sealed bid with a four-week public notice period, and must be sold in accordance with other terms prescribed by law.  Valuable materials with an appraised value between $1,000 and $20,000 must be sold at public auction with a 10-day public notice period, and other terms may be established by the DNR.  Materials appraised for $1,000 or less may be sold directly to the applicant without public notice.  While the first two categories of sales refer to "valuable materials," sales for $1,000 or less are limited by statute to specified materials (timber, fallen timber, stone, gravel, sand, fill material, or building stone).

Occasionally, citizens have requested to purchase small quantities of materials with an appraised value of $1,000 or less that are not listed in the statute, such as shrubs and mushrooms.  Under current law, DNR is not able to sell the material to them without public notice and a competitive bidding process.

The definition of a "valuable material" is any product or material on state lands, including forest products, forage or agricultural crops, stone, gravel, peat, and all other materials of value except mineral, coal, petroleum, and gas.

SUMMARY:

In addition to timber, fallen timber, stone, gravel, sand, fill material, and building stone, the Department of Natural Resources may sell other valuable material at its appraised value from state-owned lands without public notice or a competitive bidding process if the appraised value of the material is $1,000 or less.

VOTES ON FINAL PASSAGE:

      House 95   0

      Senate    46     1

EFFECTIVE:June 9, 1988